An Izmir-based producer has concluded several deals from Baltic, the US and the UK. The ex-Sweden booking was done for HMS I/II 80:20 scrap at $342.5/mt CFR, with bonus and P&S grade scrap at $362.5/mt CFR. The steelmaker’s ex-US booking was closed yesterday, January 28, for shredded and bonus grades, reported to amount to 30,000 mt in total, at $362.5/mt CFR. Meanwhile, the mill bought an ex-UK cargo, reportedly totaling 40,000 mt, for HMS I/II 80:20 scrap at $340/mt CFR, with shredded and bonus grade scrap at $362.5/mt CFR. As a result, SteelOrbis’ reference prices for ex-US, ex-Baltic and ex-EU scrap have moved up by $2.5/mt, $7.5/mt and $4.5/mt, respectively.
Market sources report that Turkish mills are seeking more deep sea cargoes both for February and March shipments. “The need for February shipments is on the low side, with bookings almost completed. But we are just starting to buy March shipments and scrap suppliers are telling us they need higher prices to earn some money,” a source commented. SteelOrbis has learned that a sub-collector in Germany has received bids from Belgium and Amsterdam-based export yards at €283/mt DAP and €285-288/mt DAP, respectively. One scrap supplier commented, “While these collection prices support the idea that European scrap exporters’ margins are tight, new players in the game are more willing to accept lower profits as they try to increase their share in the market.” SteelOrbis observes that some market players are more cautious than others as regards the recent price rise. A seller of ex-US and ex-EU scrap stated, “Deep sea HMS I/II 80:20 scrap prices may hit $340-345/mt CFR, but the finished steel market does not support higher than that.” Another European scrap supplier who disagreed said that prices will move towards $350/mt CFR Turkey. A source at a major Turkish mill stated, “We expected more demand for scrap last week, prices were softer. But, in the current week, sellers have decided to take a step back. Hence, the current eagerness of producers has a positive impact on prices.” Looking to the local Turkish rebar market, which is strictly correlated with scrap prices, there is no significant acceleration in trading. Some traders report that construction companies have started to make price inquiries for domestic projects, while the traditional demand in spring has not fully started yet. A couple of Turkish mills closed their rebar sales today, January 29. SteelOrbis hears they are planning to announce a price increase of at least a $5-7/mt tomorrow.